Editor’s note: This market commentary is provided by the Dairy Division at FCStone in Chicago, Ill.

Both GDT and Milk Production released yesterday failed to move Class III, as futures settled anywhere from -6 to +1 on the day. Although mostly weaker through 2014, Class III continues to be a bit range-bound with the January contract trading within a 35-cent range over the course of November.

Currently, the 2014 Class III pack is trading near $17.00. Since Oct. 1, the pack has gained nearly 20 cents, but is roughly 33 cents off its contract highs set back in mid-July. 

In general, both cheese and Class III continue to rebound on declines as buyers look to buy on breaks. From what we are hearing, export markets continue to be supportive. And although block prices are off their recent highs, the retreat seems to have tapered for now. Block prices have remained flat for the last three sessions at $1.82, while barrels have seen a steady decline, settling at $1.7550, off recent highs of $1.87.

Spot session results:

Block cheese: $1.82 (unchanged)

Barrel cheese: $1.755 (down 0.25 cent)

Grade A NFDM:  $1.965 (down 0.75 cent)

Butter: $1.65 (unchanged)

The December corn settled up 5 ¾ cents on the day to 417 ¾, while beans saw a bit of weakness. Jan soybeans settled down 11 ¼ cents to 1276 ¼. Corn values rebounded a bit after making new contract lows on Monday. 

Monday night data show 91 percent of the crop harvested. However, elevators remain concerned over late developing wet crops still delayed for harvest in parts of Michigan, Wisconsin and the Dakotas. Producers may face months of negative fundamental news into the spring. The question being is whether producers will remain confident enough to hold large cash inventories until next summer. Soybeans are a bit skittish as the market continues to balance old crop vs. new crop. There has been some talk of China cancelling several shipments of U.S. soy in favor of a discounted South American crop.   

The trading of derivatives such as futures, options, and swaps may not be suitable for all investors. Derivatives trading involves substantial risk of loss, and you should fully understand those risks prior to trading. Any reference to past performance is not indicative of future results. All references to futures/options trading are made solely on behalf of FCStone, LLC. All references to swap execution and bi-lateral swaps are made solely on behalf of INTL Hanley, LLC. FCStone, LLC will clear swaps when applicable. Swaps are only available to eligible counterparties. All observations of economic, political and/or market conditions are not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. and its subsidiaries and should be construed as market commentary. All recommendations to buy or sell a specific derivative or forecasting statements regarding market activity and the pricing thereof should be construed as a solicitation in any jurisdiction in where such an offer or solicitation would be legal. Proper context and guidance including but not limited to the particular trading objectives, financial situations and the needs of the intended audience were taken into consideration when this recommendation was prepared. Contact your account representative for specific advice to meet your specific trading preferences or goals. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. and its subsidiaries. Sources of information believed to reliable were used in preparing such observations, and no guarantee or representation regarding the accuracy of those sources has been made. INTL FCStone Inc. and its subsidiaries are not responsible for any redistribution of this material by third parties, or any trading decisions taken by persons not intended to view this material.